Facebook, Inc. FB announced Tuesday a new feature in its flagship Facebook App to capitalize on the online shopping frenzy set in motion by the COVID-19 pandemic.
What Happened: Facebook introduced "Live Shopping Fridays," which will start on July 16 featuring live videos from beauty and fashion brands.
Facebook users can access "Live Shopping" on each brand's Facebook page, or by visiting the "Shop" tab or bookmark on mobile. Purchases are made by tapping on the products featured in the stream and checking out.
See also: How To Buy Facebook Stock
"Live Shopping" allows shoppers access to the latest products and ask questions about size, fit and tips in real-time.
Meanwhile, brands can build relationships with customers, provide entertaining content and streamline the purchase process through convenient checkout with "Shops."
The fashion brands display their products based on common themes such as "Glow Up," "New Fashion Finds" and "Self-Care Spotlight."
Related Link: This Day In Market History: Facebook Goes Public
Why It's Important: The "Live Shopping" feature is expected to bring in revenues for Facebook by way of selling fees applicable at checkouts. Eventually, this could turn out to be a steady revenue earner.
Identifying additional revenue streams is very important for Facebook at the current juncture, given the anticipated negative impact of Apple Inc.'s AAPL thrust on user privacy.
If 80% of Facebook users opt to block the company from tracking them on iPhones, the social media giant's topline could be impacted by about 7%, Reuters reported, citing mobile ad analyst Eric Seufert.
Ecommerce giant Amazon.com, Inc. AMZN has "Amazon Live," which allows companies to do product highlighting, live promotions and chat to help engage with their audience during live streams.
FB Price Action: At last check Tuesday at publication, Facebook shares were down 0.26% at $314.65.
Related Link: Facebook Surges To New Highs As Q1 Revenue Jumps 48%: What Investors Should Know
(Photo: Facebook)
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